Financial operations are exchanges of financial capital that are agreed between lenders y borrowers under equivalent conditions, according to a financial law, between capitals delivered between one party and another. Ambas partes (la prestación y la contraprestación) deben ser financieramente equivalente. Es decir, que la suma financiera de capitales de prestación (S) y la suma … Read more
The concept of financial ratios, also known as financial indicators, are relative magnitudes of two numerical values taken from the financial statements Of a company. It is often used in accounting for the purpose of analyzing the global financial situation of a company. Another meaning of financial ratios can be the indices that reflect the … Read more
Free competition, the free market or the free market refers to the situation in which people and companies They have the total freedom to carry out any type of economic activity (as long as certain limits are respected). By economic activity we understand all those that have to do as sellers (or suppliers) or buyers … Read more
A future contract, commonly referred to as a “future”, is a financial mechanism that belongs to the group of derivative contracts. In this type of contract, two parties agree to a price determined in the present for a future date by exchanging an asset that may be materials, real estate, physical assets or financial assets. … Read more
The definition of furniture refers to the set of furniture with which a certain space is equipped, serving for the normal activities of any , office or home. All these elements are used to carry out different tasks such as working, resting or eating. This section includes, for example, chairs, tables, shelves, counters, writers, armchairs … Read more
The forfaiting is a way to obtain financing for companies and SMEs. Similar to factoring, forfaiting is based on the assignment of various payment documents, such as letters or promissory notes to a financial institution. It is a mechanism commonly used in transactions that involve export. With the forfaiting, the exporting company can advance the … Read more
A framework agreement serves to establish common initial conditions for the contracts to be formalized on the basis of said framework agreement. In this way, it is intended to simplify the management of contracts, as well as facilitating adhesion to organizations or entities and Public Administrations. Organizations that need supplies or services from other companies … Read more
The concept of financial capital is one of the most used terms in the field of finance. It took on special importance within the capitalist system, especially in the XNUMXth and XNUMXst centuries, and has been one of the bases for the functioning of this economic system worldwide. Broadly speaking, it is used to refer … Read more
When we talk about the tax shield, we refer to the expense that is reduced from the income statement of a company in order to obtain the value of the profit before taxes (BAT). It is a value that is inversely proportional to the BAT: the higher the tax shield (expenses), the lower the result … Read more
The concept of financial risk refers to the uncertainty that something that will happen, or the consequence of any action taken, will have an impact on a business organization. Financial risk is made up of the different variables that can affect an investment. We must think that when we talk about financial risk, it is … Read more
